WORK experience could be hit by new rules, according to the Federation of Small Businesses (FSB).

It claims that a scheme being introduced to conduct enhanced checks upon anyone involved in supervising school pupils' work experience could lead to the availability of such placements being severely curtailed.

The FSB believes that the resulting cost and administrative burdens would prevent small businesses from offering work experience.

It has written to Ed Balls, Secretary of State for Children, Schools and Families, to say that the Independent Safeguarding Authority (ISA) scheme could dramatically reduce the number of work experience placements available.

The scheme requires the person supervising the pupil to be registered.

The ISA will make enhanced checks through the Criminal Records Bureau which will cost £64 each.

The checks would apply to everyone supervising the pupil during the course of the placement.

Chairman of the Wessex Region Ken Moon said: "Work experience helps young people to understand the world of work, how business operates and learn about some of the job opportunities open to them.

"They are valuable to help young people in the transition between school and the world of work.

"Whilst we fully support the reason behind the checks there has to be other ways to protect young people."

q q q BUSINESSES could be facing a future liability crisis if they do not face up to growing litigation issues Lloyd's has warned.

In a new report Directors In The Dock - Is Business Facing A Liability Crisis? published by the leading specialist insurance market, businesses were urged to anticipate and prepare for future liability risks.

Lloyd's research showed that boards everywhere were feeling increasingly challenged by litigation and spending more time and money addressing these issues.

Concerns included product recalls, shareholder activism, complex operating environments and such new legislation as the Corporate Manslaughter Act.

The report revealed that a growing concern among business leaders about the rise of a US-style compensation culture in Europe and Asia and the liability fallout from the current instability in the financial markets.